ymt college of managementymt college of management

– – no longer the “great American no longer the “great American meal”meal”

Presented By:Presented By:

AnuranjanAnuranjan

ymt college of managementymt college of management

McHistoryMcHistory

McBrothers opened a drive-ins McBrothers opened a drive-ins

restaurant in 1937.restaurant in 1937.

Based upon self service concept.Based upon self service concept.

Designed their kitchen for mass Designed their kitchen for mass

production with assembly line procedure. production with assembly line procedure.

Known for their speed, service & Known for their speed, service &

cleanliness.cleanliness.

By the mid 1950’s it recorded $ 350000 By the mid 1950’s it recorded $ 350000

revenues.revenues.

ymt college of managementymt college of management

McHistoryMcHistory

Ray Kroc finalized a deal with McBrothers Ray Kroc finalized a deal with McBrothers

for franchisee and established McDonald for franchisee and established McDonald

system Inc. to appoint franchisees in 1955.system Inc. to appoint franchisees in 1955.

In late 1990’s Mcdonald experienced In late 1990’s Mcdonald experienced

major problem in sales.major problem in sales.

In 2002; the board decided to oust present In 2002; the board decided to oust present

CEO & to bring back retired vice chairman CEO & to bring back retired vice chairman

Cantalupo to overcome the present Cantalupo to overcome the present

situations.situations.

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Changes in external environment:Changes in external environment:

Change in Consumer Preference:Change in Consumer Preference: Eating at homeEating at home

Health ConsciousHealth Conscious

Stiff CompetitionStiff Competition

Company’s ImageCompany’s Image

Saturation of core marketsSaturation of core markets

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Internal Environment:Internal Environment:

Poor Franchising PolicyPoor Franchising Policy

Service and Quality compromisedService and Quality compromised

Lack of InnovationLack of Innovation

Unhappy FranchiseesUnhappy Franchisees

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Franchising Model: ProblemsFranchising Model: Problems

Unplanned ExpansionUnplanned Expansion

No Quality Control MeasuresNo Quality Control Measures

Centralized decision making Centralized decision making

Concentrated in selected marketsConcentrated in selected markets

Lack of customer service standard Lack of customer service standard

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Franchising still best if:Franchising still best if:

Planned properlyPlanned properly

Quality controlQuality control

Service standard definedService standard defined

employees are trained properlyemployees are trained properly

franchisees consulted and valuedfranchisees consulted and valued

evenly dispersedevenly dispersed

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Cantalupo’s efforts: not enoughCantalupo’s efforts: not enough

Our suggestions:Our suggestions:

Rework on the menuRework on the menu

Expand in growing marketsExpand in growing markets

Make efforts to change its imageMake efforts to change its image

Give customers what and as they want Give customers what and as they want

Keep franchisees happyKeep franchisees happy

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THANK YOU!THANK YOU!